• 12%

• 14%

• 18%

• 16%

Muse Corporation has gathered the following data on a proposed investment project: Investment required in new equipment Annual cash inflows Salvage value of new equipment Life of the investment Annual depreciation $ 113,000 $ 31,300 $5,000 5 years $ 21,600 Using the factors below, the internal rate of return on Muse's investment is closest to: Periods 1 2 3 4 5 0 L T T 12% .893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3 .127 T 1 1